Wednesday

TheInflationist at 100% Milestone | 5 Months Doubling Time

Filed under Stocks

It is time to celebrate as our portfolio hits the century milestone (100% return), translating to a doubling time of five months. For those who are new to the site, TheInflationist was born on 4th January 2009, in the midst of one of the biggest economic crisis in history. VIX was through the roof, Dow Industrials shed 1000 points a day (and up 1000 the next), financial superweights closing their doors after >100 years of operation, and prices (of anything from commodity to forex) were at extremes at unprecedented levels.

We have been relatively dormant for years, sticking to fundamentals and buying only debt-free companies trading close to cash (which meant we had very limited choices). However, as the herd went for the doors, we decided it was time to act.

Be greedy when others are fearful, and be very fearful when others are greedy -Buffett-

Five months later the dust seem to have settled as confidence is back up and there are whispers that we are now at the start of a secular bull market (despite rising unemployment-crazy). From here we aim to continue trading the way we do - the change in volatility and direction may potentially affect our performance (in an unknown way). Therefore, we will NOT double our leverage until we hit the 200% mark - this reduces the risk in the event that our trading success have been nothing but a random event occuring out of chance.

Our readership is also growing in line with our performance. We take this opportunity to welcome all new members and to thank you for your contribution. (FYI, we research every stock picked by you and provide our two cents worth of feedback). We aim to grow the community and share precious resource to help us outperform the market. There is a finite amount of research time available to any one person, so collaboration is the key. Your leads may help us outperform collectively as a group. Continue…